Meeting Agenda

Materials Distributed with Agenda Packet

Summary of Priority
Unfunded Items -- Updated

PBAC Analysis of Financing Alternatives

APPROVAL OF AGENDA

Don Farish convened the meeting at 4:14 PM by asking for a motion to approve
the Agenda. Marty Ruddell moved to approve the Agenda. A second was obtained
from Dennis Harris. Farish proposed the addition of a new item III, Faculty
Historical Analysis, 1992/93 & 1996/7. With this addition, the Agenda was
approved unanimously.

APPROVAL OF MINUTES 4-16-97

Farish asked for a motion to approve the minutes of the April 16, 1997 meeting
of the PBAC. Harris moved to approve the Minutes. A second was obtained from
Neil Markley. The minutes of the meetings were approved unanimously.

FACULTY HISTORICAL ANALYSIS, 1992/93 & 1996/97

Silvia Barajas distributed the Faculty Historical Analysis prepared by Academic
Affairs (attached and made part of the Record). It showed an increase of $697,294
in expenditures for Tenure-Track and Part-Time Faculty along with Coaches,
between the Original Budget for 1992/93 and that for 1996/97. Of this increase,
$474,000 was the result of one-time funding. The report also showed an increase
in tenure-track and department-chair FTEF of .50 and 16.43 respectively. Farish
explained that the increase in tenure-track FTEF, given the small increase
in funding, is explained by the replacement of higher-cost retiring Faculty
with lower-cost junior Faculty.

Rand Link also distributed a revised historical financial analysis of the
Student Health Center which corrected errors made in the Campus Historical
Analysis presented to the PBAC on April 15, 1997. Link's handout was added
to the Record.

SUMMARY OF PRIORITY UNFUNDED ITEMS

Larry Furukawa-Schlereth referenced the Agenda Packet and reviewed the Summary
of Unfunded Items that had been updated by the University Cabinet. He noted
an increase in the estimated Increase in the Risk Pool Premium, Historical
from $130,000 to $350,000, based upon a calculation of the midpoint in a 4/18/97
Revision of the CSURMA Summary of Funding Alternatives, which was attached
to the Summary and gave a range of increase from $207,000 to $491,000. Other
changes included deletion of the Risk Pool Deductible, now part of the Reserve;
deletion of the Collaborative Management System cost, which may not materialize
until 1998-1999; deletion of the Working Drawings for the Information Center,
which was projected to be covered by endowment earnings; and deletion of the
Natural Gas Price Increase, projected to be covered by TES and deregulated
electricity savings.

ANALYSIS OF FINANCING ALTERNATIVES

Schlereth then turned to the President's Budget Advisory Committee Analysis
of Financing Alternatives, distributed at the beginning of the meeting. He
explained that the PBAC Staff had done their best, given the time allotted,
to analyze as many of the Alternatives as possible but analysis on every item
was not complete. The Committee then reviewed the Staff Analysis and divided
the Financing Alternatives into the following three categories:

Items which appeared to be possible alternatives for further discussion;

Strategic Items or items the Committee felt could not be implemented by
7-1-97 but could potentially be implemented over a longer term;

Items that were seen as not realistic alternatives either for immediate
or future implementation.

The following information summarizes the Committee's actions in this regard:

At the conclusion of this process, Members
recognized that even if all the Alternatives seen as potentially possible were
implemented, a substantial deficit would still remain. Consequently, discussion
turned various pro-rata allocation models that could be utilized to allocate
the remaining deficit to the Divisions of the University. Farish distributed
a model which he had developed for review which was added to the Record. After
discussion of the model and problems associated with it, the PBAC, by consensus,
asked Farish and Schlereth, in association with the Cabinet, to develop an
allocation model that they would see as viable.

Members then agreed that another
meeting was needed. After several efforts to find a time when all were available,
it was agreed that PBAC would next meet on May 8, 1997 from 8 AM until 10 AM.